Boston institution Houghton Mifflin Harcourt faces an uncertain future as textbook sales dry up and its owner reels under heavy debt

This article published on Boston.com received the most commentary by former employees, freelancers, and other fans of the publishing industry sorry to see the state of Houghton Mifflin Harcourt.  It’s a shame to see the once thriving independent publisher in such a bleak outlook.

Published on February 1, 2009 and authored by David Mehegan.

It’s the latest chapter in the convoluted recent history of a grand old Boston name, a publishing institution since 1832. As recently as 2001, Houghton was a strong independent company with thriving K-12 and college textbook businesses and a stable of such best-selling authors as Roger Tory Peterson, JRR Tolkien, Philip Roth, and Rachel Carson. It has had three owners since then, none of them book publishers. Although it’s unlikely that Houghton would disappear, default on its debt could mean a fire-sale breakup and a new owner or owners who could move all or parts of it from Boston.

Moody’s last month reported that Houghton, with a debt load estimated at more than 10 times gross earnings, is "a likely default" unless its loans are renegotiated. S&P last month placed parent EMPG on its list of weakest links – companies in greatest danger of debt default. "The debt level is our biggest concern," said S&P analyst Hal Diamond, "given the state of the economy and state budget constraints. While they can reduce costs, they can only go so far."  Read full article…

Commentary from the field–great insights and opinions.